Overview of KPIs – why have them?
- The performance of a business is the sum of the individual performances of each and every team member. Without KPIs we have no way of knowing how well someone is performing, or not
- Having KPIs in place will give you as Managers all the information you need to know if your team are doing well and to help them if they’re not
- Knowing what they have to do and how to succeed in their jobs will give your team confidence that they are on the right track
- Having objective KPIs lets you go from opinion to fact. A member of your team can argue with your opinion of their work but they can’t argue with the facts
- KPIs ensure that performance reviews and appraisals stay focused and that you have objective evidence to discuss with the employee
- What gets measured gets done. As human beings, we prioritise the things we’re going to be measured on. KPIs mean that your team know exactly what needs to do be done and where their efforts should be spent (if it’s a key performance indicator then it’s important to the business)
How to introduce KPIs to your team
For KPIs to be effective, they must be introduced properly. It must be clear to every member of your team that KPIs are important to the business, to you as their Manager and to their own success.
What are the benefits to the employee?
In order to explain the benefits of KPIs to your employees, you should focus on making sure that they know:
- They will have a clear idea about the critical aspects of their role;
- They will get regular, timely and consistent feedback on your performance;
- Their efforts will be recognised, their achievements rewarded and their successes celebrated;
- They will have more self- confidence and will enjoy their job more;
- It will help you to help them to have more career opportunities.